Market Developments

Neiman Marcus sold for $6 billion

Dallas--Private equity firm Ares Management LLC and a Canadian pension plan are the new owners of luxury retailer Neiman Marcus, making it the second upscale department store chain to change hands in less than two months.

According to a statement circulated Monday, Ares and the Canada Pension Plan Investment Board (CPPIB) purchased the Dallas-based department store chain from its current owners, a group of investors led by TPG Capital L.P. and Warburg Pincus, for $6 billion.

Ares and CPPIB will retain an equal economic interest in the retailer while Neiman Marcus management, led by CEO Karen Katz, retains a minority stake. The transaction is expected to close in the fourth quarter 2013.

The chain’s transfer from one set of investors to another is the second ownership shift for a U.S.-based luxury department store chain in less than two months. In late July, Hudson’s Bay Company paid $3 billion to acquire Neiman Marcus rival Saks Fifth Avenue. HBC owns Lord &amp; Taylor in the U.S., as well as Hudson’s Bay and Home Outfitters in Canada.

In a statement, David Kaplan, Ares senior partner and co-head of the company’s Private Equity Group, said they are “delighted” to join with CPPIB as a long-term investor in Neiman Marcus and plan on putting money into the company “to ensure Neiman’s long-term position as the unparalleled leader in luxury retail.”